Car sales rise 30pc in January, but slump 49pc in seven-month period

KARACHI: Car sales rose 30 percent in January from a year earlier, boosted by a low base effect and new model launches, but were still down 49 percent in the first seven months of the fiscal year, industry data showed on Tuesday.

According to data released by Pakistan Automotive Manufacturers Association (PAMA), passenger car sales increased by 30 percent in January 2024 to 7,802 units, against 6,021 units in January 2023. In the first seven months of FY24, a total of 38,464 units were sold, down 49 percent from 74,933 units sold during the same period in FY23.

January 2024 sales increased by 59 percent compared with 4,916 units sold in December 2023.

Mashood Ali Khan, an auto expert and former chairman of PAAPAM (Pakistan Association of Automotive Parts and Accessories Manufacturers), said that in January last year, there was a huge issue with CKD and Pak Suzuki’s plant was almost closed, so sales have shown an increase in January this year, which is a positive sign. However, seven-month sales are not encouraging.

He said that economic and political uncertainty was the reason behind a decline in auto sales in the seven months and the crisis for the auto industry was not over yet. “We have to look at the next quarter, as the crisis persists there due to uncertainty on the political and economic front,” he said.

During January 2024, sales of 1300 cc and above cars were recorded at 4,091 units, down 3 percent compared with the same period in the previous year’s sales of 4,207 units.

In January 2024, 1,000 cc cars recorded sales of 593 units, (of which 273 units were of Suzuki Cultus and 320 units were of Suzuki WagonR) against 1,214 units in the same month last year.

Below 1,000 cc vehicles recorded a sale of 3,118 units against 600 units last year. Sales of Suzuki’s Alto increased manyfold to 2,983 units in January 2024, compared with 44 units in January 2023. Last year, the company witnessed production hindrances due to the availability of the raw material.

Buses and trucks saw a decrease of 242 units in January 2024 from 470 units in January 2023. The sale of jeeps and pick-ups decreased to 2,734 units from 5,103 units sold during the same period last year.

Sales of tractors rose to 3,814 units from 3,406 units in January 2023. The sale of rickshaws and motorbikes decreased to 104,619 units in January 2024 against 109,558 units in the same period last year.

According to the Topline Securities, it was the highest monthly car sales after 11 months. Including Non-PAMA members, car sales clocked in at 11.7K, up 72 percent month-on-month in Jan-2024. Car sales generally increase in January as people wait for the new year to purchase vehicles with new year registrations.

Indus Motors (INDU) recorded the highest increase in car sales, up +304 percent month-on-month to 2,762 units in Jan-2024, primarily due to the launch of the new Corolla Cross. Escalating car prices, expensive auto financing, and the low purchasing power of consumers contributed to the decline in sales for 7MFY24.

Pakistan Tractor sales increased 46 percent month-on-month and 12 percent year-on-year to 3,814 units in Jan-2024. In 7MFY24, Tractor sales clocked in at 27,225 units, up 82 percent year-on-year, primarily due to the low base of last year amid floods.